What our analysis shows
Our calculations, data as of 23 October 2026
- A standard 60 m² two-bedroom flat comes to $192,900 in Hobart and $164,400 in Launceston or on the north-west coast. In Canberra the same flat costs $237,600, the highest of any capital in our model.
- Tasmanian tenants pay as much for a detached one-bedroom dwelling as for a flat, or more. In 8,219 new bonds from January–June 2026, Greater Hobart's detached one-bedroom median was $428 against $395 for a flat (+8%). In Sydney the same comparison showed a 24% discount.
- Launceston pays back fastest in Tasmania at 10.7 years: the regional build costs $29,000 less than in Hobart while two-bedroom detached rents are only $25 a week lower.
- A Canberra flat needs about $750 a week to pay back in 10 years after tax. Using the full 90 m² lifts that to $1,055.
Payback on a 60 m² two-bedroom flat
- Launceston (TAS)10.7 years
- Greater Hobart (TAS)11.9 years
- North-west coast (TAS)11.9 years
After agent fees, insurance, maintenance and tax at 30%, no loan. Rent: our medians of new Tasmanian bonds for detached 2-bedroom dwellings, January–June 2026. The ACT has no comparable public bond medians.
Tasmania: cost
| Line, 60 m² in Hobart | Cost |
|---|---|
| Construction | $158,400 |
| Site preparation (flat, easy access) | $12,000 |
| Sewer, water, power and stormwater connections | $10,000 |
| Design, engineering and NatHERS energy rating | $8,000 |
| Approval: Building permit (no planning permit) | $4,500 |
| Total | $192,900 |
In the General Residential zone a secondary residence needs no planning permit for its use. If the design meets every acceptable solution of the zone standards, the council's check is quick (Glenorchy quotes up to 10 business days); if it relies on a performance criterion, it becomes a discretionary permit with public notice. The flat must share access and parking with the main dwelling, and many Hobart blocks are steep: on a sloping site our model adds $13,000 to $33,000.
| Size | Budget | Standard | Premium | Standard, regional |
|---|---|---|---|---|
| Studio, 35 m² | $116,800 | $135,200 | $165,400 | $117,100 |
| 1 bed, 45 m² | $134,400 | $156,900 | $193,600 | $134,800 |
| 2 bed, 60 m² | $163,900 | $192,900 | $240,400 | $164,400 |
Tasmania: what tenants pay
Tasmania's Department of Justice publishes every bond with its suburb, dwelling type and bedrooms. We took all 8,219 bonds lodged January to June 2026 (private housing) and grouped them by region:
| Region | 1-bed detached | 1-bed flat | 2-bed detached | 2-bed flat |
|---|---|---|---|---|
| Greater Hobart (62 / 301 detached) | $428 | $395 | $520 | $500 |
| Launceston (27 / 151 detached) | $350 | $350 | $495 | $450 |
| North-west coast (22 / 82 detached) | $300 | $300 | $445 | $400 |
| All Tasmania (129 / 662 detached) | $370 | $370 | $490 | $480 |
Unlike Sydney, there is no granny flat discount here: detached one- and two-bedroom dwellings let for the same as flats or a little more. One likely reason: Tasmania has few new apartment blocks, so a small detached dwelling competes with older units rather than new towers. The detached one-bedroom samples are small outside Hobart, so treat those medians as indicative.
| Area | 1-bed rent | 2-bed rent | 60 m² build | Net yield |
|---|---|---|---|---|
| Launceston | $350 | $495 | $164,400 | 12.5% |
| Greater Hobart | $428 | $520 | $192,900 | 11.1% |
| North-west coast | $300 | $445 | $164,400 | 11.1% |
If the 90 m² change goes through
A 90 m² flat would cost about $272,100 in Hobart, $79,000 more than 60 m². That size fits three bedrooms or a two-bedroom layout with room for a carer, which matters more for family use than for rent. For a rental, the two-bedroom rents above do not reward the extra 30 m²: the payback in Hobart rises from 11.9 to 16.5 years at the same rent.
ACT: cost
| Line, 60 m² in Canberra | Cost |
|---|---|
| Construction | $201,600 |
| Site preparation (flat, easy access) | $12,000 |
| Sewer, water, power and stormwater connections | $10,000 |
| Design, engineering and NatHERS energy rating | $8,000 |
| Approval: Development application (compliant design) | $6,000 |
| Total | $237,600 |
Canberra builds cost about 12% more than Sydney's in the builder price lists we used. Every secondary residence needs a development application and then building approval. Since 1 July 2026 there is no minimum block size, so smaller blocks in established suburbs can take a flat if the design meets the Territory Plan.
| Size | Budget | Standard | Premium | Standard, regional |
|---|---|---|---|---|
| Studio, 35 m² | $140,700 | $164,200 | $202,600 | – |
| 1 bed, 45 m² | $163,200 | $191,700 | $238,500 | – |
| 2 bed, 60 m² | $200,600 | $237,600 | $298,100 | – |
| 2 bed, 70 m² | $228,100 | $271,200 | $341,800 | – |
| 2–3 bed, 80 m² | $255,500 | $304,800 | $385,400 | – |
ACT: the rent you need
We could not find ACT bond medians by suburb and dwelling type in a public dataset, so here is the weekly rent each flat needs for a given payback after tax:
| Payback target | 45 m², 1 bed | 60 m², 2 bed | 90 m², 3 bed |
|---|---|---|---|
| 8 years | $760 | $935 | $1,315 |
| 10 years | $610 | $750 | $1,055 |
| 12 years | $510 | $625 | $880 |
| 15 years | $410 | $505 | $705 |
Compare these with an agent's appraisal for a detached dwelling of the same size in your suburb. The rental yield calculator takes any rent you enter.
ACT: lease, land tax and design
Most Canberra blocks are held on a Crown lease whose purpose clause allows one dwelling, and adding a secondary residence used to need a lease variation. Planning Act changes passed by the Legislative Assembly on 21 October 2026 give every single-dwelling Crown lease an automatic entitlement to a secondary residence, so no variation is needed; a development application for the design and siting still is. The ACT also charges land tax on residential property that is rented out, so ask ACT Revenue how a rented secondary residence on your home block will be assessed before you sign a lease. ACT builders report that secondary residences are designed to adaptable housing standards, with wider doors and step-free access, which shapes the plan and the cost.
This week's worked example
Week of 19 October 2026. A new example, rule and owner report every Monday.
A 60 m² two-bedroom flat with a premium finish on a block with some slope, services 8 m from the house, in Greater Hobart: our model puts it at $253,400 turnkey ($223,000–$284,000), or $4,220 per m². At the area's median 2-bedroom bond rent of $520 a week it would return 8.3% net and pay back in 15.4 years after tax.
Rule check: The ACT removed the 500 m² minimum block size for secondary residences on 1 July 2026; the 90 m² limit and the development application requirement stay.